Unlike most vehicles, collector cars appreciate in value. This means specialized insurance requirements for these vehicles. If you are becoming a classic car owner, you need to know the following before purchasing a collector car insurance policy.
Eligibility For Collector Car Insurance
Classic or Antique Vehicle
To qualify for collector car insurance, your vehicle must meet one of the following two conditions:
- Antique vehicle: For insurance purposes, a car that is 25 or more years old is considered an antique.
- Historic interest: A ten to 24-year-old vehicle may be eligible for collector car insurance if it is a classic car, such as a muscle car or hot rod.
Limited Use
Most owners know that classic cars are not for everyday use. To be eligible for collector car insurance, your antique car may not be used as your primary driving vehicle. Most insurance companies will set maximum annual mileage restrictions for a classic car – typically 7,500 miles. You must have and drive another vehicle as your primary way you drive to and from work, school, and other frequent destinations.
Condition of the Vehicle
Generally, to be eligible for collector car insurance, the vehicle must be undergoing restoration (or already restored), well maintained, and preserved. Some insurers may decline to cover an antique vehicle that is poor condition.
Vehicle Storage
A classic car left out in the open can sustain damage from the elements. Most insurance companies will require you to store your vintage vehicle in a fully enclosed garage or other approved storage facility.
Other Conditions for Collector Car Insurance Coverage
- Many insurance companies will not cover claims unless you were engaged in pleasure driving or participating in a hobby activity (show, exhibition, or parade) when the accident occurred. If you were driving to work, the store, or another destination, you may not be covered.
- Most carriers will ask you to agree not to race your classic car or drive it on a racetrack.
- Many insurers will only issue a collector car insurance policy if you are at least 25 years of age and have a minimum of ten years of driving experience with a good record (no more than one moving violation or at-fault accident within the past three years).
How Do Collector Car Insurance Policies Work?
A collector car insurance policy includes the typical personal car insurance coverage options. These include collision, comprehensive, liability, medical, and uninsured/underinsured motorist. The difference is, in case of a total covered loss, the insurance company pays an agreed-upon value, instead of the actual cash value of the car. You are eligible for this payout provided:
- No parts have been removed from the car
- No deterioration of the car’s condition has occurred through neglect or abuse
- No prior damage has been done to the vehicle
If you have a classic car you treat with loving care, it will appreciate in value, unlike other vehicles. Our friendly agent can help you find the right collector car insurance policy to protect your investment, at the best available rates.